SYSTEMATIC AUDIT

Grey River Argus, 28 May 1935, Page 8

SYSTEMATIC AUDIT

TREND OF THE TIMES. “In mv opinion our efforts should in future bp directed to making clearer and clearer to the public what our reports ns auditors really mean,” remarked Mr. E. Furnival Jones, F.C.A., al a meeting of the English Institute of (’bartered Accountants. “The Americans,” he continued, have developed rather more fully than avc have the distinction between a full and a partial audit. Modern deve lopnients of business suggest, that this distinction is bound to groAA’ in the future. Large business concerns Avill probably extend the practice of having an internal audit department Avhich will concern itself Avith the control of details and cheek the honesty of employees, the professional auditor being concerned only to see that the internal system is adequate and is beingcarried out, and with the nreparation and the verification of final accounts and balance sheets. “There will also, I suggest, be an increase in the tendency to specialise. We, have seen the growth of ucav societies of members and others who are concerned with special branches of our work or of work more or less related to it. The company secretaries, the municipal accountants, cost and vorks accountants and arbitrators each have their sepaTate organisations. Others ’ will doubtless arise as time goes on. “Accountants will in future have to bo familiar Avith the methods and possibilities of mechanical accounting, and such methods necessarily give an added importance to internal controls and nxtke it more difficult for an outside professional man to verify day to day transactions. “What other developments of the profession may be expected as *tomorrow and to-morrow, and to-morrow creeps, hi his petty pace from day to daV” Tt is unsafe to prophesy unless you' know-and, ns Adorn is said to have remarked to Eve when leaving the Garden of Eden. ‘This is an age ot transition.’ But the changes ot the last 50 years are n guide, and I thinK it is safe to say that the employment of professional aeeountants as adiisers in certain recognised directions _of those in control of business anil tinonce nil! inerease as the years go on. “Since this Institute was founded, the work of professional accountants has covered an over-widening field, nnd has become more and more exacting. The standards of professional attainment which will lie required in the future are not likely to be lower than in the past, the work is not likely to be less exacting nor will the responsibilities diininish. ” I -